Note 7 - Notes Payable

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Debt Disclosure [Text Block]

7. Notes Payable

GRA Note

–

On

February 28, 2018,

we entered into a Senior Note Purchase Agreement with Georgia Research Alliance, Inc. (GRA) pursuant to which we issued a

five

-year Senior Promissory Note (the “GRA Note”) to GRA in exchange for

$50,000.

The GRA Note bears an annual interest rate of

5%,

payable monthly. Future principal repayments are expected to be

$3,026

for the remainder of

2020,

$12,487

in

2021,

$13,126

in

2022,

and

$2,252

in

2023.

Interest expense related to the GRA Note for the

three

-month and

nine

-month periods ended

September 30, 2020

was

$411

and

$1,344,

respectively, as compared to

$547

and

$1,753,

respectively, for the same periods of

2019.

CARES Act Paycheck Protection Program Loan

–

On

April 17, 2020,

we received a

$170,200

bank loan backed by the United States Small Business Administration pursuant to the Paycheck Protection Program (PPP) provisions of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The loan bears an annual interest rate of

one

percent and is due

April 17, 2022.

Commencing

November 17, 2020,

monthly payments of

$9,578.16

will be due. Amounts due

may

be prepaid without penalty. We accrued interest expense associated with the PPP Loan of

$429

and

$774

for the

three

-month and

nine

-month periods ended

September 30, 2020,

respectively. In

October 2020,

we applied to the lender to have the loan forgiven, based upon our submission of qualifying information regarding eligible expenses; as of the date of this report our application has

not

been processed.